Local credit unions report grim first quarter

Wednesday

Two local credit unions seeking mergers lost millions of dollars in the first quarter of 2009 as their net worths continued to drop, records show.

After losing $3.9 million in 2008, The Members Own Federal Credit Union of Victorville lost $4.2 million in the first three months of 2009, National Credit Union Administration records show.

The High Desert FCU, which fell into federal conservatorship by the NCUA in October, lost $16 million in 2008 and nearly $13 million in the first quarter of 2009.

The net worth ratio — which causes federal concern below 7 percent — has fallen to 1.32 percent for The Members Own FCU, while the net worth ratio of High Desert FCU has plummeted to a negative 9.45 percent.

One silver lining may be a declining delinquency rate at both institutions.

The Members Own FCU delinquency rate is down to 7.3 percent from 9.7 in December, and High Desert FCU delinquency has dropped to 25.5 percent from 35.4 percent in December.

At both credit unions, all branches are operating as usual, and all members' deposits are insured up to $250,000 by the National Credit Union Share Insurance Fund, backed by the federal government.

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